Define the term amortized but write down its meaning in your own words in reference to amortized mortgages.

Q: If a friend who’d never heard of amortization before asked you to explain how loan payments work,…

A: Amortization is a technique used in accounting to decrease the book value of such a loan or…

Q: Going to a bank and applying for a mortgage loan would be an example of what type of financing?…

A: A mortgage is a contract between you and a lender that provides the lender the right to repossess…

Q: The stock price of BAC is currently $120 and a put option with strike price of $120 is $5. A trader…

A: Here,Current price is $120Strike price is $120Premium is $5Strategies:-1. 300 Shares of BAC2. 3…

Q: XYQ Co. believes the following probability distribution exists for its stock. What is the…

A: Formulas:

Q: What is a mortgage pay-through bond (MPTB)?

A: Mortgage Pay-through bond: MPTBs (Mortgage Pay-through bonds) are delivered in contradiction of…

Q: mortgage loan, the borrower always creates two documents: a note and a mortgage. Please describe the…

A: When granting mortage loan to the borrower lender wants saftey of payments and wants that borrower…

Q: What is meant by a participation loan? What does the lender participate in? Why would a lender want…

A: Participation loans: It is a type of loan in which the lender shares the net operating income of the…

Q: understand how the secondary mortgage market functions, remember that the primary function of this…

A: Secondary mortgage market is the market where banks repackage and sell mortgages as securities to…

Q: What is the difference between an investment - grade bond and a junk bond?  2 .  What are the…

A: The primary difference between an investment grade bond and a junk bond lies in the credit quality…

Q: Explain the difference between calculating simple interest and calculating the interest for a…

A: When you take out a loan, the money you borrow is called the principal. The rate of interest is the…

Q: Describe some of the motives and mistakes made by the mortgage brokers?

A: To market and attract new borrowers for the lenders Assessment of credit history of the borrowers.…

Q: Explain in detail and with examples why the functioning of mortgage institutions could be considered…

A: Mortgage institutions are the companies that are mainly into the production of mortgage loans, be it…

Q: balloon-payment mortgage. Why might a financial institution prefer to offer this type of mortgage?

A: Step 1 A balloon payment is a one-time payment that is bigger than usual at the expiration of the…

Q: Mortgage Banks have different cost structures depending on how they originate or acquire mortgage.…

A: Mortgage banks are those banks which are specialised in mortgaging loans. Such banks are involved…

Q: How can i get the best mortgage rates ?

A: A mortgage rate is an interplay of various quannd qualitative factors. In order to get the best…

Q: Name two ways that FNMA currently finances its secondary mortgage operations.

A: The question is based to study the source of funding for the Federal National Mortgage Association…

Q: Which of the following is an example of nonrecourse debt? (a) A personal loan secured by collateral…

A: A nonrecourse debt is where the borrower is liable only till its collateral, i.e the lender can only…

Q: What is a mortgage-related security?

A: Mortgage-related security: A mortgage-related security is a kind of asset-backed security which is…

Q: Explain the list contains a description of some of the more important terms used when dealing with…

A: Margin:  Margin is considered as certain percentage points that lenders added to the index rate in…

Q: When might a borrower want to have another party assume his liability under a mortgage loan?

A: There are basically two conditions when a borrower might want to have a third party:

Q: Describe some of the motives and mistakes made by the mortgage securitizers?

A: To market as well as attract borrowers for lenders.Evaluation of the borrower's credit…

Q: How does mortgage pay-through bond (MPTB) resemble a mortgage-backed bond (MBB)? How does it differ?

A: Introduction: The mortgage pay-through bonds are also called as hybrid securities. These bonds have…

Q: Mortgages can be insured? Who insures mortgages and why? Can mortgages be sold? If so, who buys…

A: YES, mortgage can be insured. Mortgage insurance is an insurance policy that protects a mortgage…

Q: define the parameters included in the interest rate of a mortgage. In addition, explain which of the…

A: Parameters included in the interest rate of a mortgage. Parameters included in the interest rate of…

Q: What is a mortgage payable?

A: Long-Term LiabilitiesLong-term liabilities are the obligations of the business that need not be paid…

Q: Arbitrage is the idea that one can (select the best answer): Group of answer choices   Buy and…

A: The objective of the question is to understand the concept of arbitrage in finance and select the…

Q: Explain Mortgage-Equity Approach?

A: Mortgage-Equity Approach: It has advanced for quite a while. It is a numerical technique, in view of…

Q: When would you would use a Personal Loan? Why would you choose a Personal Loan over other methods of…

A: “Since you have posted multiple questions, we will solve fist question for you. If you want any…

Q: Explain Negative Amortizing, Constant Payment Mortgage (CPM) Loans?

A: Negative amortizing: Negative amortization is a financial concept that refers to a rise in a…

Q: Explain the term Mortgage-Equity Capitalization?

A: The mortgage equity capitalization technique is not a technique which is that commonly used. However…

Q: With a Fixed-Rate Mortgage, the ate risk. bears the interest bears the interest rate risk and with…

A: A mortgage is a type of loan that requires security. The mortgage can classify based on the interest…

Q: Which of the following situations are likely to result in higher loan defaults?     Mortgages…

A: Loan default implies that borrower is not able to repay debt according to initial predetermined…

Q: When one examines a REIT investment, why it is important to consider the terms of the company’s…

A: REIT stands for Real Estate Investment Trust. It manages and operates properties that generate gain…

Q: Explain the term Fixed Interest Rate Mortgage (FRM) Loan?

A: Mortgage loans:   The mortgage is a type of loan in which a property or any other real estate is…

Q: Explain Restructuring the Mortgage Loan?

A: The mortgage loan restructuring option is generally considered by homeowners so that the loan…

Q: How can be Mortgage Transfer to a New Owner?

A: Assumable mortgage refers when a mortgaged property is sold along with the loan. Buyer in this case,…

Q: Explain the Federal National Mortgage Association (FNMA)?

A: The Federal National Mortgage Association (Fannie Mae) is a federal corporation that guarantees…

Q: Explain why adjustable rate mortgages (ARMs) are considered to be a more suitable alternative for…

A: Adjustable rate mortgages : Also referred to as variable rate or floating rate mortgages, an…

Q: Which are the Minimum Mortgage Requirements?

A: Meaning of mortgage: Mortgage is nothing but an instrument of debt that the creditor is obliged to…

Q: Explain GPM Mortgage Loans and Effective Borrowing Costs

A: Graduated-payment contract (GPM) loans: It may be a sort of fixed-rate mortgage in which…

Q: Why might a wraparound lender provide a wraparound loan at a lower rate than a new first mortgage?

A: Introduction: Wraparound mortgage is a type of loan in which loans are given to borrowers, who is…